“In order to make the project viable, the state is planning to divide Dharavi into smaller plots,” said a source. The redevelopment plan has been a non-starter and in the latest round private players showed little interest in the project despite global tender being floated.

Dharavi, Asia’s largest slum, is spread over 557 acres. The shanty plots had been divided into five sectors with 9,000-14,000 slumdwellers each. One sector was being developed by the Maharashtra Housing Area Development Authority (Mhada). For the remaining four sectors, the government had invited global tenders, but didn’t receive a response from any private bidder even after the fifth attempt. The last bid was opened on July 30.

“It is difficult to manage the huge number of slumdwellers and relocation of commercial structures. The real estate industry is also going through a lean phase. This is the reason for not receiving response from private developers,” said a senior official.

On Monday, state housing minister Prakash Mehta has convened a meeting to discuss the issue with the principal secretary of housing department, principal secretary of urban development department and chiefs of SRA and SPPL.